IRS addresses delay in processing payments submitted via Modernized e-File

QuickAlert for Tax Professionals: Delay in Processing Form(s) 1040, 1040-X, and 1040-ES Payments Submitted via Modernized e-File (04/22/2021)

An IRS QuickAlert for Tax Professionals issued on April 22, 2021, has addressed delays in processing Form(s) 1040, 1040-X and 1040-ES payments submitted via Modernized e-File.

Background. Modernized e-File (MeF) is a web-based system that allows taxpayers to electronically file tax returns with the IRS. MeF allows taxpayers to e-file a balance due return and, at the same time, authorize an electronic funds withdrawal for the balance due from the taxpayer's bank account. The taxpayer can request that the electronic funds withdrawal (i.e., payment) be taken on a certain date ("payment request").

Payment processing delays. The IRS had experienced delays in processing payments related to e-filed Form(s) 1040, 1040-X, Amended U.S. Individual Income Tax Return, and 1040-ES, Estimated Tax for Individuals. According to the Alert, the IRS has resolved the delay issue, and pending payments are now being processed.

The QuickAlert states that taxpayers' accounts will be credited using the original payment request dates the taxpayers used when they filed their returns. Delayed payments should not be re-submitted.

If a taxpayer has already re-submitted a payment request due to the processing delay, the taxpayer may cancel the re-submitted payment request by calling 1-888-353-4537. However, the cancellation of payment requests must be received no later than 11:59 p.m. ET, at least two business days prior to the scheduled payment request date.

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